Wilcherry Project, South Australia (Alliance 51%)

The Project is located within the southern part of the Gawler Craton in the northern Eyre Peninsula and comprises six exploration licences covering 1,074 km2.

The Wilcherry Project area is prospective for economic concentrations of gold, tin, copper, zinc, lead, silver, iron, bismuth, tungsten and uranium in a variety of mineralisation styles, including skarn, intrusion-related, sediment-hosted, shear-hosted and iron oxide copper-gold.

Alliance’s initial focus is exploration for gold and tin.

The area is predominantly overlain by a shallow veneer of transported cover that has prevented exploration by early prospectors. Drilling by modern explorers has identified significant mineralised systems hosted within Palaeoproterozoic calcareous and iron-rich metasediments which are intruded by Hiltaba Suite Granites that are responsible for widespread gold, uranium and base metal mineralisation in the Gawler Craton. The recent discovery of high grade tin, which had previously not been recognised in the district, suggests a more complex mineralised history than previously thought.

A regional HEM survey commenced at the Wilcherry Project in early December.

The high-resolution HEM survey is being completed using the XciteTM system to test for conductors associated with massive sulphide base metal deposits including tin, copper-gold, and silver-lead-zinc deposits. The survey has been planned to test a large area of Palaeo-proterozoic Hutchinson Group meta-sediments where they are underlain by Hiltaba Granite (indicated by significant gravity lows). The survey is being flown on 800 metre spaced east-west oriented lines and infilled to 400 metre line spacing in areas of significant conductivity.

A total of 1,085 line km (86%) of the original planned survey area has been completed and an additional 76 line km of infill surveying have been flown. The survey paused on 20 December 2016 due to prior commitments of the aircraft and is planned to recommence in February 2017.

Results received to date have been highly encouraging with many late-time conductors identified, potentially indicative of massive sulphide mineralisation.

Most of these conductors still require infill flying, however surveying is complete at the Zealous tin prospect and the Telephone Dam silver-lead-zinc prospect where strong late-time conductors have been identified.

The conductor near Zealous is arcuate and approximately 1.7 kilometres long. The anomaly is located 450 metres to the northwest of previous drilling at the prospect and presents a high priority target for future exploration.

The conductor at Telephone Dam strikes north-south and is approximately 3.0 kilometres long. While some deep drilling has been completed at this prospect, its effectiveness at testing the conductor is uncertain at this stage.

Refer to Alliance ASX announcement dated 21 December 2016 for further details.

Alliance intends to complete ground electromagnetic surveys at the Zealous and Telephone Dam prospects in early 2017 to better define the location of conductors for drill testing.

Zealous Prospect Drilling Results

In late 2016, Alliance received the results from a three hole diamond drilling program by Tyranna at the Zealous prospect in August-September 2016.

The drilling, completed prior to the commencement of the joint venture, primarily targeted a magnetic anomaly thought to represent a potential source for the tin previously intersected at the prospect, however, there is insufficient magnetism in the core to explain the anomaly.

A significant number of large, low grade lead-zinc intercepts have been returned from drilling at Zealous, which in conjunction with the tin results and known geology of the district, supports a distal mineralised environment which may be suitable for the development of a replacement sulphide hosted tin deposit similar to Renison, Tasmania.

The 2012 discovery of high grade tin in this region indicates that a reduced tin-bearing granite has intruded the Palaeoproterozoic sediments, which include multiple fold-repeated horizons of dolomite (the favourable host rock for replacement tin deposits), and potentially represents a new and significant tin province in South Australia.

Refer to Alliance ASX announcement dated 16 November 2016 for further details.

Historic Sample Pulp Analyses

Between 2007 and 2013 approximately 830 RC and diamond holes totalling over 77,000 metres were drilled at the Wilcherry Project to define iron mineralisation. At that time, tenement holder IronClad Mining Limited (now Tyranna) did not have the rights to gold or base metals and therefore did not analyse for those elements.

Alliance has commenced a program of assaying these historic sample pulps for gold and XRF analyses for other metals.

Significant gold results returned from assaying of 2012 RC samples at Weednanna (originally drilled for magnetite but not assayed for gold), include:

2m @ 30.03 g/t Au from 17m

5m @ 6.34 g/t Au from 13m (incl. 3m @ 10.10 g/t Au from 13m)

3m @ 8.30 g/t Au from 53m

8m @ 1.99 g/t Au from 5m (incl. 3m @ 4.03 g/t Au from 6m)

11m @ 1.43 g/t from 55m (incl. 6m @ 2.13 g/t Au from 60m)

Refer to Alliance ASX announcements dated 2 February 2017 for further details.

Alliance has commenced a reverse circulation drilling program at Weednanna to test three possible high-grade gold shoots.

Previous Exploration

The Project area has been explored since the 1970’s by companies including Pan Continental Mining, Asarco and Marumba Minerals for uranium and Broken Hill Type base metals associated with the Paleoproterozoic Hutchison Group metasediments. This resulted in the discovery of the Menninnie Dam lead-zinc-silver deposit (not part of the Project) and the Telephone Dam lead-zinc-silver occurrence. These base metal concentrations occur within calc-silicates, marbles and banded iron formations (BIF’s) of the Middleback Subgroup. Research by later explorers concluded that the mineralisation was contemporaneous with intrusive rhyolites of identical age to the Gawler Range Volcanics. The BIF sequences of the Hutchison Group also include the high grade hematite deposits of the Middleback Ranges.

During the 1980’s The Shell Company of Australia and WMC continued to explore the area for lead and zinc. Shell (later Acacia) in joint venture with Aberfoyle then refocussed exploration onto copper and gold utilising calcrete sampling to identify and prioritise target areas for drill testing.

In 2002, Aquila Resources acquired the Project tenements to explore for IOCG deposits similar to Olympic Dam and in 2006, Trafford Resources Ltd (Trafford), now a wholly owned subsidiary of Tyranna, acquired the Project tenements from Aquila.

In 2012, a 10 hole drilling program by IronClad, designed to test an outcrop of high grade hematite at the Zealous prospect, 13km NE of Wilcherry Hill, intersected high grade tin (cassiterite) hosted by a magnetite skarn which has been weathered to goethite and limonite. The discovery drill hole (12ZLRC007) returned 7m @ 3.28 % Sn from 52m. The host rocks are Palaeoproterozoic sediments adjacent to a granite footwall.

The discovery of high grade tin in this region potentially represents a new and significant tin province in South Australia.

Significant tin (Sn) intercepts to date from Zealous prospect:

Refer to Tyranna ASX Announcement dated 2 August 2016 for further details.

The other major prospect is the Weednanna gold prospect, 3 km SE of Wilcherry Hill.

In 1997 Acacia, identified a strong gold-in-calcrete anomaly at Weednanna which is coincident with a prominent NNW-trending magnetic anomaly. Successive drilling campaigns identified gold mineralisation associated with skarn alteration and brecciation in the contact aureole of the adjacent granite. Weednanna is now known to be a magnetite breccia in carbonate altered rocks forming a skarn near the contact with a granite intrusion and containing elevated gold, bismuth, tin, uranium, lead and zinc. Weednanna West is a calc-silicate skarn defined by a NW-trending IP anomaly and containing significant gold.

Significant gold (Au) intercepts to date from Weednanna and Weednanna West prospects:

Refer to Trafford ASX Announcement dated 17 April 2012 for further details.

Project Summary

The Wilcherry Project area is prospective for economic concentrations of gold, tin, copper, zinc, lead, silver, iron, bismuth, tungsten and uranium in a variety of mineralisation styles.

The area is predominantly overlain by a shallow veneer of transported cover that has prevented exploration by early prospectors. Drilling by modern explorers has identified significant mineralised systems hosted within Palaeoproterozoic calcareous and iron-rich metasediments which are intruded by Hiltaba Suite Granites that are responsible for widespread gold, uranium and base metal mineralisation in the Gawler Craton. The recent discovery of high grade tin, which had previously not been recognised in the district, suggests a more complex mineralised history than previously thought.

There are twenty eight (28) existing exploration targets within the Project area. The highest priority exploration targets at the Project are currently the Weednanna gold prospect and the Zealous tin prospect.

Proposed Exploration

Proposed work may include 3D inversion modelling of HEM and MLEM, interpretation of aeromagnetic data; infill ground gravity surveys, 3D inversion modelling and interpretation; re-logging of regional drill hole geology and alteration; integration of all data in order to identify and rank conceptual exploration target areas and drill testing of priority targets.